We are in times of change, and the pressure on business and company management is increasing. Business models that were successful yesterday are in danger of becoming obsolete tomorrow. Competitors that did not exist until recently are now threatening the existence of the company. New technologies, changed communication, new environmental requirements, Changed buyer behaviorThe following article takes a look at corporate management and corporate governance, their specific tasks in times of change and how their respective approaches and actions must ultimately change.
The world is changing rapidly and radically. What does this mean for the management of the company?
Everywhere you look, changes are coming our way, often without an obvious solution. This or something similar is how many managers see the management environment today. And of course this automatically raises the question: in an environment that is constantly and unpredictably changing, how should the company be managed? Does it also have to change? And how? Isn't it only logical that the methods and instruments that have been successfully used here up to now are also obsolete? Do we now have to simply throw everything we have successfully practiced in recent years overboard? And what is needed instead? The uncertainty is great, as is the number of "good advisors".
The company management
Corporate management can be divided into two different areas: corporate management and corporate governance. Both are closely linked elements that can only be successfully managed in harmony with each other.
No one - neither individuals nor organizations - can escape the influence of megatrends. Therefore, it goes without saying that corporate management as a whole, in all its facets, is also affected by the changes and upheavals of the current era. First, however, we will take a closer look at corporate management. Here there is a much better and, above all, faster lever for adapting the company or management to the changes. Nevertheless, it should be noted that the close interdependence of management and control means that no truly sustainable change in management can be successful if it only focuses on one aspect. The elements of corporate management under the aspect of "times of change" will also be dealt with in detail here in further articles.
Corporate management
Corporate management is primarily aimed at directly influencing the company's performance. A distinction is made between three different core areas of activity/fields of action.
The Strategy performance includes the:
- Strategy development (scenarios, development, communication, transparency, robustness)
- Strategy implementation (prioritization, cascading, responsibility, commitment, measures)
- Strategy controlling (measurement, key figures, early warning system, corrections).
With the Business performance the fields of action focus on:
- Operationalization of strategic goals for the organization/functions/employees
- Creation of optimal freedom of action and organizational climate
- Integration of all subsystems and operational controlling (KPIs).
The Project performance can be significantly increased by paying much more attention to the problem of change, which is present in every project, and by developing a Active change management will.
Corporate management and control in times of change: re-evaluating the focus
So far, this is not actually anything amazingly new: the fundamental elements of corporate management and control are not really changing. However, in times of change, the focus and design of the individual elements must be set significantly and massively differently than was the case in the past. This is the challenge of the current times.
The challenges for companies in times of change
What we are currently experiencing has never happened before. Of course, there have already been changes and transformations in the past. But the coming together of
- rapid and unexpected loss of what has been tried and tested
- the unimaginable power of new developments
- the enormous pressure of past wrong decisions
- the occurrence of all these phenomena in all areas of life and society
is unprecedented. It is therefore certainly not wrong to assume that at some point in the future, this era (starting in the early 2000s and lasting until perhaps 2040-50) will be known in retrospect as the era of major transformations.
But what does this mean in concrete terms for management? What should, must and can they do to steer the company safely and as sustainably as possible into the future in this turbulent environment?
What the rethink must look like
The good news is that you don't have to simply throw everything that was right and worked in the past overboard. The fundamentals and key instruments of corporate management and control remain the same (at least for the time being).
The next piece of (also good) news: there are certainly ways to adapt and adapt to this turbulent world. Not an "ostrich strategy", but a conscious reapplication of existing and proven instruments and methods. The focal points, the applications, the frequency, the people affected and involved must be redefined and repositioned. And you have to learn to rethink, act, decide and implement the tried and tested.
In times of change and the associated uncertainty, there are two main principles:
- There is (still) no really clear solution and nobody knows one!
- The biggest mistake is to do nothing and make no decision!
In the upcoming articles on the topic of "Corporate management in times of change", the individual, concrete proposals on all elements of corporate management and control will be presented.
(Cover image: © suphakit73 | stock.adobe.com)
